Multiple choice

Directions: Choose the correct option and complete the sentence.

Direct material + Direct labour + _______ = Prime cost

  1. Direct expense

  2. Indirect expense

  3. Overhead expense

  4. Indirect material

  5. Indirect labour
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Prime cost is the sum of all direct costs associated with production. It is calculated as Direct Material + Direct Labour + Direct Expenses.

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